His decision to disclose his tax bill
follows a public outcry over the aggressive tax avoidance practices of
some of the country’s top earners.

In an unprecedented move, David Harding, founder of the Winton Capital hedge fund, has opened his books to reveal he paid the full £34m on his £87millon income in 2011.

While most at his level avoid paying their share - hiding vast sums in offshore accounts or relocating themselves to foreign tax havens - Mr Harding said he would rather be 'accepted by society'.

Last year he took a salary of £16.1 million paying income tax of more than £8m at a rate of 50 per cent.

He took a further £71.3m in dividends on which he paid tax at the lower rate of 40 per cent and paid £325,000 in national insurance contributions.

Winton Capital, which he founded in 1997, is due to pay £133m on its 2011 revenues at a rate of 38 per cent.

Mr Harding donates £50,000 a year to the Conservative Party but claims to veer towards the centre-left politically and would consider donating to the Liberal Democrats if approached.

A philanthropist too, he has given £20million to the Cavendish Laboratory in Cambridge and is on the development board of the Francis Crick Institute a £1m medical research centre.

David Cameron (right) described Comedian Jimmy Carr as 'morally wrong' for using a scheme which allowed him to pay 1 per cent tax on part of his earnings

He told the Sunday Times: 'I think that if you want to be accepted by society you have to be seen to be paying your share.

'I
think the resentment and anger is felt among the middle class - the
civil servants, the teachers, the soldiers,the public sector workers,
the professional classes, the backbone of the British nation.'

The tax affairs of the rich have come under increased scrutiny in the wake of the Economic crisis.

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Earlier this year Prime Minister David Cameron described the comedian Jimmy Carr as 'morally wrong' after it was revealed he had put part of his earnings in an offshore fund allowing him to pay a rate of just 1 per cent tax.

In the race to become Mayor of London earlier this year, both Boris Johnson and Ken Livingstone published their tax returns, with Livingstone's campaign hindered by allegations he used some creative accounting to avoid paying his full share.

Mr Harding, who was brought up in Oxford, admitted he had in the past been tempted to leave Britain.

He added: 'It would be impossible for it not to cross your mind.

Not for me: Mr Harding has shunned foreign tax havens such as the Bahamas saying he is happily based in England

'I am not sure I would easily find a better place to move to. I speak English, my life is here, I like England and the tax rate is not higher than Scandanavia or the rest of Europe.

'Taxes in Switzerland are not as low as they used to be. I can't go to the Bahamas, I've got family.'

The 51-year-old, who recently married a German employee, has a 19-year-old son from a former marriage and two more children from an earlier relationship.

He insisted he was not 'whiter than white' adding: 'I'd rather not pay the tax. But everyone is aware that the country has to fill in its budget deficit from somewhere.

You can't run a huge deficit forever.

'I would pay any tax to do something which was vital for my country as long as I didn't feel it was vindictive.'